Jio signs agreement worth above 57 billion IND with Silver Lake
Mumbai: Jio signs agreement with Silver Lake of 57 billion rupees. Digital Reliance platform of leading industrialist Mukesh Ambani today signed investment agreements worth Rs 5,655.75 crore with world renowned technology investor Silver Lake. About 15 days ago, Jio had also signed a Rs 437.54 billion deal with the world’s social media website Facebook for 9.99% equity.
Jio, which entered in the telecom sector in September 2016, has become the country’s leading company in just 44 months with 38.75 subscribers.
Silver Lake will acquire 1.15 equity in Jio with an investment of 5655.75 crores. Deal with Silver Lake has been done at a 12.5% premium as compared to Facebook. It is likely that there will be more such strategies and financial deals on Jio platforms in the coming days.
Jio said today that Silver Lake had invested Rs 4.90 crore in equity and Rs 5.15 lakh crore in enterprise ratings. Facebook’s investment in Jio was at an enterprise rating of Rs 4.62 lakh crore.
The equity of strategic and financial investments in Jio platforms has grown to around 20%, of which Facebook alone accounts for almost half of 9.99%.
The Jio platform is the next generation wholly-owned technology unit of Reliance Industries Limited. Jio has said that despite the recent investment, Reliance Jio will remain the sole exclusive unit of Jio platforms.
This investment by Silver Lake, one of the world’s leading technology investors, is significant in many ways at this time when the entire world and countries are going through a severe economic crisis in the global epidemic of coronavirus. The company said that extensive digitization was necessary for the Indian economy and employment generation.
Commenting on the partnership with Silver Lake, Mukesh Ambani, the Chairman and Managing Director of Reliance Industries, said, “I am delighted to welcome Silver Lake as an M Partner for the Indian digital ecosystem. This will benefit all Indians. As Jio signs agreement with Silver Lake, it will be beneficial for India as it has a strong track record of partnerships with world-renowned technology companies. Silver Lake is one of the most respected organizations in terms of technology and capital. We are excited that we will be able to leverage Silver Lake’s global connections to transform the Indian digital society. ”
Egon Durban, the co-chief executive and managing partner of Silver Lake, said: ” “Jio Platform is one of the world’s most trusted, exceptional companies, which are in the hands of a very strong and strong management team. It is rapidly advancing on the path of development with a clear vision and a broad-mind set.”